Ladies and Gentlemen, esteemed industry colleagues and honoured guests, your presence here today is of utmost importance as we delve into sustainability within the Nigerian and African context.
It is a privilege to address the pressing and profound topic of sustainability with you, esteemed industry colleagues and honoured guests, who play a crucial role in shaping our shared future.
As we gather to discuss our shared future, we face a landscape marked by both formidable challenges and remarkable opportunities. These challenges, I must stress, are not distant threats, but urgent issues that demand our immediate attention.
Allow me to provide a brief overview of the summit’s structure. We will delve into three key areas:
1.) the current sustainability challenges,
2.) The opportunities that arise from these challenges, and
3.) The specific focus is on Africa and Nigeria.
Insightful discussions and thought-provoking topics will accompany each segment.
Today, the world economy and the global sustainability agenda are being shaped by five key trends, known as the 5Ds. Let’s briefly explore each of these.
§ Decarbonisation: This trend is essential to combating climate change and is driven by international commitments such as the Paris Agreement, which aims to limit global warming to 1.5 degrees Celsius above pre-industrial levels. To achieve this, countries and companies are investing heavily in renewable energy sources like solar and wind power, enhancing energy efficiency, and developing carbon capture and storage technologies. The shift towards a low-carbon economy is also fostering innovation in electric vehicles, green buildings, sustainable agriculture and clean water technologies.
§ Deglobalisation: This trend is characterised by the re-localisation of supply chains through onshoring (bringing production back to the home country) and nearshoring (moving production closer to the home country). Factors driving deglobalisation include trade wars, protectionist policies, and the need for greater supply chain resilience, as highlighted by disruptions during the COVID-19 pandemic and current geo-political tensions.
§ Decentralisation: This trend is driven by the need for a more sustainable and resilient energy system distributed energy resources (DERs). Distributed energy resources include small-scale renewable energy installations like rooftop solar panels, wind turbines, and energy storage systems. As consumers increasingly become prosumers (producers and consumers of energy), this decentralisation transforms the traditional energy grids, enhances energy security, and enables more efficient and localised energy management.
§ Demographics: Demographic trends have profound implications for the global economy and sustainability agenda. Fundamental demographic shifts include ageing populations in developed countries and youthful, rapidly growing populations in developing regions, particularly in Africa and parts of Asia. These changes affect labour markets, economic growth, healthcare systems, and social services.
§ Digitalisation: Digitalisation is the integration of digital technologies into all aspects of society and the economy. This trend is revolutionising industries by enhancing efficiency, productivity, and innovation. Critical areas of digitalisation include the Internet of Things (IoT), artificial intelligence (AI), big data, and blockchain technology. In sustainability, digitalisation facilitates smart grids, precision agriculture, and efficient resource management. It also enables better monitoring and reporting of environmental impacts, supporting more informed decision-making and policy development.
Opportunities and Outlook
Yet, amidst these challenges lie extraordinary opportunities. Advancements in technology and innovation offer new pathways to sustainability. Renewable energy sources such as solar, wind, and hydropower are becoming more efficient and accessible, promising to reduce our reliance on fossil fuels. Circular economy models are emerging, emphasising the reuse, recycling, and regeneration of materials to minimise waste and environmental impact.
Furthermore, the growing global awareness and commitment to sustainability, exemplified by initiatives such as the Paris Agreement and the United Nations Sustainable Development Goals, provide a framework for collective action. Businesses, governments, and civil society increasingly collaborate to develop sustainable solutions, driving a shift towards more resilient and inclusive economies.
Sustainability Challenges and Opportunities in Africa and Nigeria
Turning our focus to Africa, specifically Nigeria, we see a region rich in potential yet facing significant hurdles. Africa’s unique biodiversity and natural resources are invaluable but threatened by deforestation, desertification, and climate change. Nigeria’s oil industry has been a double-edged sword, fuelling economic growth while causing severe environmental degradation and social unrest.
However, Africa and Nigeria are also lands of immense opportunity. The youthful population represents a demographic dividend that can drive innovation and sustainable development if harnessed through education and employment. The rise of green entrepreneurship and sustainable agriculture practices is transforming local economies and improving livelihoods. For instance, initiatives in Nigeria to promote renewable energy, such as solar power projects in rural areas, are bridging the energy gap and reducing reliance on non-renewable sources.
Moreover, Africa’s cultural and community-centric approaches provide a strong foundation for sustainable development. Traditional knowledge and practices often embody principles of environmental stewardship and social cohesion, critical to sustainable living.
Lastly, at both national and continental scales, sustainability challenges like Poverty, Inequality, Food Security, and access to Healthcare and Education are still pressing issues for a large part of the population. Therefore, striving to attain sustainability in Africa and Nigeria is not just a choice but a necessity that cannot be detrimental to people’s lives and livelihoods.
The 5D framework encapsulates the main trends reshaping the global economy and driving the sustainability agenda. Decarbonisation, deglobalisation, decentralisation, demographic changes, and digitalisation each present unique challenges and opportunities. By understanding and harnessing these trends, businesses, governments, and societies can navigate the complexities of the modern world and work towards a more sustainable and prosperous future.
Thank You.
- Keynote address by Lamé Verre at the inaugural Africa Interviews Sustainability Forum, on Wednesday, June 5, 2024, at the Federal Palace Hotel, Victoria Island, Lagos
About Author:
Lamé Verre, an award-winning energy executive, is Co-Founder & Co-Chair, Lean In Equity and Sustainability, https://www.linkedin.com/in/lameverre/, https://www.leaninequity.org/
